Life Insurance

[WVMomof3]

Thanks for all the advice. I think we will keep it the same for at least 10 years and reassess then. Or we will see what the rates are and how long we can lock in at this point in our life. I am not working now, but hope to go back to the workforce soon. And if my husband should die first, I really think I could live on the cheap! lol He is more of a spender than me. Twenty times salary seems like way of an overkill.

 

[MomToOne]

I actually don't carry any life insurance anymore. Sacrilege, I know. But DD is now 17, and I have no spouse (never did - I know, another sacrilege - what can I say, I don't follow social norms). The small amount of insurance I get for free through work, plus my assets, would give DD right about 10x my annual salary. That should be enough to see her through college, and get her setup in life on her own. The rest will have to be up to her!

Now if I'm still alive once she's out of college, well then, it's time for me to enjoy retirement! Who knows what will be left for her

But really, if you are worried about Alzheimer's or other issues requiring expensive care eating up your savings and leaving nothing for an inheritance, you might be better off to look at long-term care insurance. It's not a fix-all, but it would help. My plan is to get a policy once I'm done paying for DDs college. My mother had Alzheimer's, and we managed with home care for many years. But in a final twist of fate, she actually died of lung cancer that was undiagnosed until the end stages - you just never know what will happen!

 

[tvguy]

I actually don't carry any life insurance anymore. Sacrilege, I know. But DD is now 17, and I have no spouse (never did - I know, another sacrilege - what can I say, I don't follow social norms). The small amount of insurance I get for free through work, plus my assets, would give DD right about 10x my annual salary. That should be enough to see her through college, and get her setup in life on her own. The rest will have to be up to her!

Now if I'm still alive once she's out of college, well then, it's time for me to enjoy retirement! Who knows what will be left for her

But really, if you are worried about Alzheimer's or other issues requiring expensive care eating up your savings and leaving nothing for an inheritance, you might be better off to look at long-term care insurance. It's not a fix-all, but it would help. My plan is to get a policy once I'm done paying for DDs college. My mother had Alzheimer's, and we managed with home care for many years. But in a final twist of fate, she actually died of lung cancer that was undiagnosed until the end stages - you just never know what will happen!

Only thing with a minor child........even if only for a few months....is that you have an Estate Plan in place with a Guardian designated (which you may have done). Everything else you are doing is perfectly reasonable. My dad died when I was young. My mom dropped all life insurance as soon as I was done with college. She had invested my Social Security Survivors Benefits money from my dad ( 12 years worth) and, that paid for all my college. She did purchase a single premium Long Term Care policy that had a life insurance component that was reduced by whatever was paid out for long term care.

 

[mommy2mrb]

My DH died when my DD was 9. At the time we had $900,000 for him and $200,000 for me.

It was a blessing. I was able to pay off our personal and business debt, buy a new car outright and a new condo outright. Invested the remaining money for long term and DD college help. She will be starting college next fall.

I would much rather have him back, but thankful we planned as we did. Not having the financial stress on my shoulders along with everything else we went through. I was also able to stay at home with my DD, just went back to work part time last year when my half of SS ended.

Was very surprised by how many friends didn't have life insurance. Had many get it after my DH passing.

I am keeping my insurance through DD college years and then will reassess at that point. My father died of Alzheimer's in 2003 so it is a worry for me. Want to make sure my DD won't have a financial burden taking care of me if needed.

 

[Ciao Mickey]

Thanks for all the advice. I think we will keep it the same for at least 10 years and reassess then. Or we will see what the rates are and how long we can lock in at this point in our life. I am not working now, but hope to go back to the workforce soon. And if my husband should die first, I really think I could live on the cheap! lol He is more of a spender than me. Twenty times salary seems like way of an overkill.

When I was your age and my kids were still in school, and if I had lost my husband, I would be glad that I had 20x his salary instead of 10x.

I was out of the workforce for years and there is no way I could have gone back in and made what he made to keep up our standard of living.

If you have that earning potential (identical or more than your husband) then you have nothing to worry about and don't need a big policy.

Good luck in whatever you decide. : )

 

[tvguy]

My DH died when my DD was 9. At the time we had $900,000 for him and $200,000 for me.

It was a blessing. I was able to pay off our personal and business debt, buy a new car outright and a new condo outright. Invested the remaining money for long term and DD college help. She will be starting college next fall.

I would much rather have him back, but thankful we planned as we did. Not having the financial stress on my shoulders along with everything else we went through. I was also able to stay at home with my DD, just went back to work part time last year when my half of SS ended.

Was very surprised by how many friends didn't have life insurance. Had many get it after my DH passing.

I am keeping my insurance through DD college years and then will reassess at that point. My father died of Alzheimer's in 2003 so it is a worry for me. Want to make sure my DD won't have a financial burden taking care of me if needed.

My hat is off to you. I was 9 when my dad died. I did not fully appreciate how hard it must have been for my mom until I had kids myself. My dad had life insurance, he was forced to retire on Social Security Disability and Veterans benefits at age 54, 2 years before he passed, so we mostly were living on my mom's earnings. She was a Surgical Nurse. After dad passed, mom put all my Social Security and Veterans benefits in the bank for my college.
I never wanted for anything I needed.
I learned a lot from my mom. Things like, time together is more important than a spotless house. That still drives my wife nuts. . That you save SOMETHING from EVERY paycheck. That you eat just fine buying only what is on sale that week at the store. That a car can last longer than the payments by a LOT of years. Mom kept one car 27 years, another 14 years, and had her last car 10 years. There was one lemon, a 1974 Buick Apollo that she had to get rid of after 2 years.

 

[mommy2mrb]

My hat is off to you. I was 9 when my dad died. I did not fully appreciate how hard it must have been for my mom until I had kids myself. My dad had life insurance, he was forced to retire on Social Security Disability and Veterans benefits at age 54, 2 years before he passed, so we mostly were living on my mom's earnings. She was a Surgical Nurse. After dad passed, mom put all my Social Security and Veterans benefits in the bank for my college.
I never wanted for anything I needed.
I learned a lot from my mom. Things like, time together is more important than a spotless house. That still drives my wife nuts. . That you save SOMETHING from EVERY paycheck. That you eat just fine buying only what is on sale that week at the store. That a car can last longer than the payments by a LOT of years. Mom kept one car 27 years, another 14 years, and had her last car 10 years. There was one lemon, a 1974 Buick Apollo that she had to get rid of after 2 years.

Thank you!
While it hasn't been easy raising my DD by myself I feel I've done a pretty good job. She is compassionate and great student. Will be applying to college this next month and wants to become a nurse practitioner.

Sounds like your moms a smart lady!!